S4 Capital APAC sees significant growth in latest results

S4 Capital plc has released its financial results for the first quarter 2021, with the Asia Pacific region seeing significant growth but contributing to less than 10% of the global gross profit.

The digital advertising and marketing service firm has seen continued growth across this quarter, with reported revenue up 71% to £122 million (A$220 million). That figure was up 35% on Q1 2020. Reported gross profit was up 71% to £104 million (A$187 million), up 33% like-for-like.

S4’s latest figures follow on from a growth rate of 27% from the final quarter of 2020, and compare to 19% in Q1 last year.

All regions showed growth across the quarter, with the Asia Pacific region representing 9% of the reported £104 million gross profit. While it was a small contribution to the global total, it represented an increase 95% from the last report. S4 recently hired Tom Braybrook to head up growth in AUNZ for MediaMonks and MightyHive.

The Americas represented 70% of reported gross profit, up 63%, and EMEA represented 21%, up 97%.

MediaMonks ANZ managing director, Vinne Schifferstein said: “These stellar results of 71% growth in revenue and gross profit are a true testament to our astonishing talented Monks around the world and here in AUNZ. I’m extremely excited about what’s ahead of us. We’re steering a rocket ship; agility and focus are more important than ever for us and for our clients.”

Vinne Schifferstein, managing director MediaMonks ANZ

The results will have been aided by recent mergers within S4 Capital, with Decoded Advertising merging into MediaMonks, and performance marketing agency Metric Theory joining MightyHive. Other mergers included Tomorrow China, Staud Studios, Jam3 and Datalicious Australia.

The group said in a statement “this represents an excellent start to achieving the Group’s 2021-23 three-year plan of doubling its size on a like-for-like basis and of also achieving the previous 2019-21 and 2020-22 three-year plans, which both also called for a doubling.”

S4 Capital’s content practice, representing 72% of total gross profit, was up 64% in reported revenues and 62% in gross profit, up 35% and 31% like-for-like.

Supplied by S4 Capital

S4 was founded in 2018, following Sir Martin Sorrell’s departure from WPP. Sorrell and his former employer are currently engaged in legal proceedings over unpaid payments allegedly owed to Sorrell.

S4 Capital now has more than 5000 employees, working across 31 countries, and is looking to continue growth, revising its annual forecast like-for-like gross profit target from 25% to 30%.


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